FARMINGTON, Conn., March 5 /PRNewswire-FirstCall/ -- EDAC
Technologies Corporation (OTC:EDAC.OB) (BULLETIN BOARD: EDAC.OB) ,
a designer and manufacturer of jet engine components, tools,
fixtures, injection molds and spindles, today reported results for
the fourth quarter and the fiscal year 2006. Sales for the fourth
quarter of 2006 were $10,975,000 and net income was $677,000 or
$0.14 per diluted share, versus sales of $9,442,000 and net income
of $631,000 or $0.13 per diluted share for the fourth quarter of
2005. Income from operations for the quarter increased from
$841,000 in 2005 to $1,057,000 in 2006. For the fiscal year 2006,
sales were $38,329,000 and net income was $1,554,000 or $0.32 per
diluted share versus sales of $35,045,000 and net income of
$3,299,000 or $0.69 per diluted share for the fiscal year 2005.
Income from operations increased to $2,888,000 in 2006 from
$2,800,000 in 2005. Fiscal year 2005 benefited from an income tax
credit of approximately $342,000 and debt forgiveness of $750,000.
In addition, selling, general and administrative expenses for the
2006 fiscal year included $280,000 of nonrecurring costs which
consisted primarily of plant reconditioning and moving expenses,
professional fees and special bonus. Had these expenses not been
incurred, income from operations would have been $3,168,000 in 2006
compared to $2,800,000 in 2005. Commenting on the quarter and
fiscal year, Dominick A. Pagano, President and Chief Executive
Officer, said, "We are very pleased with the strong results. This
year is our fourth year of improving sales and operating profit.
For the fourth quarter we posted our highest quarterly operating
income in the past five years. Our Precision Aerospace product line
continues to strengthen. Sales for this product line increased by
$6.7 million or 72%, from $9.3 million in 2005 to $16.0 million in
2006. Total company backlog increased by $10.7 million from $21.7
million at the end of the fiscal 2005 to $32.4 million at February
28, 2007. Our inventories at year-end increased to support the
higher backlog." "We believe that 2007 will be another positive
year and have planned on investing $3.7 million primarily in
machinery and equipment to increase capacity in the Precision
Aerospace product line." About EDAC Technologies Corporation EDAC
Technologies Corporation is a diversified manufacturing company
primarily offering (i) design and manufacturing services for the
aerospace industry in such areas as jet engine parts, special
tooling, equipment, gauges and components used in the manufacture,
assembly and inspection of jet engines (ii) high-precision
fixtures, gauges, dies and molds and (iii) the design, manufacture
and repair of precision spindles, which are an integral part of
numerous machine tools found in virtually every manufacturing
environment. Cautionary Statement Regarding Forward Looking
Statements - This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company uses words such as "plans," seeks,"
"projects," "expects," "believes," "may," "anticipates,"
"estimates," "should," and similar expressions to identify these
forward looking statements. These statements are subject to risks
and uncertainties and are based upon the Company's beliefs and
assumptions. There are a number of important factors that may
affect the Company's actual performance and results and the
accuracy of its forward-looking statements, many of which are
beyond the control of the Company and are difficult to predict.
These important factors include, without limitation, factors which
could affect demand for the Company's products and services such as
general economic conditions and economic conditions in the
aerospace industry and the other industries in which the Company
competes; competition from the Company's competitors; and the
Company's ability to enter into satisfactory financing
arrangements. These and other factors are described in the
Company's annual and quarterly reports filed from time to time with
the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the Company's expectations and beliefs as of the date of this
release. The Company anticipates that subsequent events and
developments may cause these expectations and beliefs to change.
However, while the Company may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation or intention to do so.
Contact: Glenn L. Purple Vice President-Finance 860 677-2603 EDAC
TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS For
the three months ended For the twelve months ended December 30,
December 31, December 30, December 31, 2006 2005 2006 2005 Sales
$10,974,503 $9,441,833 $38,329,212 $35,045,033 Cost of sales
9,213,682 7,829,528 32,072,085 29,075,091 Gross profit 1,760,821
1,612,305 6,257,127 5,969,942 Selling, general and administrative
expenses 703,472 771,740 3,369,020 3,170,002 Income from operations
1,057,349 840,565 2,888,107 2,799,940 Non-operating income
(expense): Interest (178,783) (141,979) (664,327) (619,452) Gain on
debt forgiveness - - - 750,000 Other 17,205 9,914 90,846 26,299
Income before income taxes 895,771 708,500 2,314,626 2,956,787
Provision for (Benefit from) income taxes 219,238 77,959 760,238
(342,041) Net income $676,533 $630,541 $1,554,388 $3,298,828 Income
per common share data: Basic $0.15 $0.14 $0.34 $0.74 Diluted $0.14
$0.13 $0.32 $0.69 Weighted average shares outstanding: Basic
4,522,437 4,504,270 4,515,757 4,487,080 Diluted 4,777,398 4,785,643
4,795,564 4,772,666 EDAC TECHNOLOGIES CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS December 30, December 31, 2006 2005
ASSETS CURRENT ASSETS: Cash $925,197 $2,468,964 Accounts receivable
(net of allowance for doubtful accounts of $110,000 as of December
30, 2006 and $184,000 as of December 31, 2005) 7,331,226 5,587,305
Inventories, net 8,234,866 4,296,839 Prepaid expenses and other
current assets 56,438 81,210 Refundable income taxes 140,650 54,984
Deferred income taxes 211,394 769,864 Total current assets
16,899,771 13,259,166 PROPERTY, PLANT AND EQUIPMENT, at cost: Land
634,692 632,821 Buildings and improvements 6,424,382 6,316,490
Machinery and equipment 23,587,670 20,879,703 30,646,744 27,829,014
Less: accumulated depreciation 20,315,938 18,861,156 10,330,806
8,967,858 DEFERRED INCOME TAXES 1,248,786 1,440,989 OTHER ASSETS
86,001 108,833 TOTAL ASSETS $28,565,364 $23,776,846 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Revolving line of credit
$1,000,000 $- Current portion of long-term debt 1,895,436 1,404,053
Trade accounts payable 4,806,090 2,427,866 Employee compensation
and amounts withheld 1,511,820 1,397,897 Accrued expenses 355,415
706,861 Customer advances 120,767 284,671 Total current liabilities
9,689,528 6,221,348 LONG-TERM DEBT, less current portion 8,081,720
7,791,530 OTHER LONG-TERM LIABILITIES 163,981 965,823 SHAREHOLDERS'
EQUITY: Common stock, par value $.0025 per Share; 10,000,000 shares
authorized; issued and outstanding-- 4,526,437 on December 30, 2006
and 4,504,270 on December 31, 2005 11,316 11,261 Additional paid-in
capital 9,530,688 9,452,525 Retained earnings 2,571,172 1,016,784
12,113,176 10,480,570 Less: accumulated other comprehensive loss
1,483,041 1,682,425 Total shareholders' equity 10,630,135 8,798,145
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $28,565,364 $23,776,846
DATASOURCE: EDAC Technologies Corporation CONTACT: Glenn L. Purple,
Vice President-Finance of EDAC Technologies Corporation,
+1-860-677-2603 Web site: http://www.edactechnologies.com/
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